Use a car loan for down payment

[Nathan Rude]

I have the opportunity to acquire a vehicle at an incredible discount. The purchase price would be 2750 and the retail value would be 8300. A local bank has run the numbers and I can put a car loan on the vehicle for up to 125% LTV for a loan of 10,375. Subtracting out the 2750, that leaves me about 7600 I can cash out of this loan.

My question is this - would I be able to use that as contribution on a down payment on a property? I'm not sure if this is even legal, using a loan as down payment, but I thought it would be a great opportunity if it is. Essentially I would buy a car that lets me buy a house that pays the house and car off!

Anybody have any insight into this?

[Brandon Hicks]

Jeremy Hua

I started off leveraging in any way I could to buy real estate about 7 years ago. I quit my job with 28 units almost 4 years and now have 64 units. I’m making considerably more money than I was working and I expect more than double my income over the next 5 years.

As long as he’s making good investments I don’t see a problem with his strategy. You gotta do what you gotta do to get to where you wanna be. No two paths/situations are alike in this business. Even if he fails...at least he’s getting off the couch. I’ll bet somewhere around 70% of the people that join BP never do a deal or at least don’t do multiple deals.